Government made an “extra effort” to reduce the value of the deficit – TVI24

The Government has made an “additional effort” to reduce the value of the deficit in the State Budget for 2016, he said Prime Minister Antonio Costa told the Financial Times, considering that it is “a sign” of fiscal responsibility.

Fix the deficit at 2.6% of GDP this year, down from 3% last year and 2.8% proposed in the government’s program was “a clear sign” of fiscal responsibility, said in an interview António Costa today published in the economic newspaper, noting that the government made an effort to reduce the amount of deficit and public debt after “weeks of talks” with officials from the European Commission.

The government forecasts point to a reduction of 0.2 percentage points in the structural deficit to 1.1% of GDP, “the greatest decrease in the last years,” estimated António Costa, but some analysts believe that growth forecasts of 2.1% government are too optimistic, increasing the possibility of conflict with the Commission.

In the interview, the prime minister shows up convinced that can reduce the severity of recent years with the support of the Left parties that helped shape government (PCP and the Left Bloc) without antagonizing Eurozone partners, lenders and investors.

The attempt to “turn the austerity page” within the constraints of fiscal policy in the euro zone is being closely watched throughout Europe and António Costa believes that its budget proposals for 2016, submitted the European Commission this weekend are “proof” that reverse austerity is compatible with budgetary discipline.

“The truth is that at the same time, which creates basis for increased employment, higher economic growth and more social protection, this budget goes further in reducing the deficit than planned in our government program. This shows that we are committed to fiscal responsibility and compliance with the rules of the euro area “, he said.

Facing battles on several fronts, Costa acknowledged that trying to reconcile the requirements its leftist allies, partners in the eurozone and financial markets was “a very demanding exercise,” but proved to be convinced he can “change the direction of the economy without conflicting with the European Union”.

The prime minister stressed that “it is completely wrong to think that a European country such as Portugal could become more competitive by relying on competitive factors third world” and that “the idea that productivity increases with the number of hours worked gives people the wrong incentive “because what is needed is to increase the value of goods and services that are produced.

In contrast to the recession fueled by austerity, high unemployment and expansion of the public debt of the previous government, Costa said he wants to take the country “forward, not backward.”